Literature Review: Strategic HRM for Competitive Advantage

This literature review explores the impact of Strategic Human Resource Management (SHRM) on organizational performance and competitive advantage. It analyzes four articles that emphasize the importance of SHRM in attaining a competitive edge. The review discusses how SHRM practices, such as improving employee skills, behaviors, and attitudes, can lead to better organizational performance. It highlights the link between HR strategy and business strategy, emphasizing the need for organizations to value employees as human assets and invest in their development through training, motivation, and effective recruitment practices. The review concludes that strategic human resource management plays a vital role in the overall success of an organization by enhancing financial performance and building a sustainable competitive advantage. Desklib provides access to similar past papers and solved assignments for students.

Running Head: SHRM 1
Strategic Human Resource Management

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Introduction
Strategic Human Resource Management (SHRM) is a process of enticing, enhancing and
retaining the human resources for the advantage of both individuals and organization as well.
Strategic human resource management is directly or indirectly linked with the performance and
competitive advantage of the organization (Ployhart and Moliterno, 2011). This paper includes
the discussion about how strategic human resource management helps an organization in gaining
competitive advantage against its competitors. In order to discuss this topic, following is the
annotated bibliography to analyze the impact of SHRM on firm’s performance and competitive
advantage in today’s business environment. There are four articles from different authors, which
are used to discuss this issue. The discussion of each article includes the purpose of study, main
points of the article, and further it consists of the findings of the articles. All the articles are
relevant to the given topic and state different views of different authors.
Annotated Bibliography
Cania, L. 2014, The Impact of Strategic Human Resource Management on Organizational
Performance, Economic Seria Management, Volume 17, Issue 2.
The major purpose of this article is to focus on the impact of strategic human resource
management in attaining a better performance of organization. In this article, the study was
conducted on the basis of primary sources. Author states that human resource management is
very important for an organization to stay competitive in the market by attaining its performance
indicators. In addition, it states that by improving and enhancing the skills, behaviors and
attitudes of human resources, the organization can attain its expected performance and
competitive advantage against its competitors. It defines the relationship between strategic
human resource management and competitive advantage by defining the role of SHRM for
organizational performance.
The article found that strategic human resource management is used for getting effective
outcomes from individuals, teams and organization as whole. In this process, the organization
can develop this process by planning goals and objectives, setting required standards and
developing some core competence requirements. Furthermore, it states that effective use of
knowledge, competencies and skills of employees will make it possible to attain organizational

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performance and competitive advantage. This source is relevant and reliable, as it provides a
roper research on the given topic.
Delery, J.E. and Roumpi, D, 2017, Strategic Human Resource Management, Human
Capital and Competitive Advantage: is the Field going in Circles, Human Resource
Management Journal, Vol. 27, No. 1.
The objective of this article is twofold with the stiffness between human capital and Strategic
Human Resource Management. The author started with a short review of the conceptual logic
connection of management of HRM practices and firm outcomes. Thus, the final goal of this
article is emphasize on the argument between SHRM and human capital research in relation to
treatment of resource based firms. The article includes a model, which recommends that
practices of human resource management are not just pillars, which makes the firm able to attain
sustainable competitive advantage as many of the human capital assumes. In contrast, the article
found that human resources management processes can assist to the competitive advantage of
firm not only by improving the ability of employees and providing opportunities and motivation,
but also by building demand-side and supply-side flexibility restraints. This article is totally
relevant to the given topic, as it states the importance of strategic human resource management in
enhancing the strategic performance and competitive advantage of a firm in today’s competitive
business environment.
Jalagat, R.C, 2016, A Critical Review of Strategic Human Resource Management and
Organizational Performance, Global Journal of Advanced Research, Vol. 3, Issue-10.
The major purpose of this article is to analyze the considerable relationship between
organizational performance as an element of competitive advantage and high performance
working system as a major element of strategic human resource management. Furthermore, this
article studies the link between business strategy and human resource strategy. The findings of
the article supported that the relationship between both the elements and performance of
organization in both the financial and non-financial terms. In this article, the author states that
the human resource strategy of the company should be linked with the business strategy, because
it assists in satisfying the customers and maintaining the commitment and dedication of
customers for the firm to gain sustainable and successful competitive advantage. It indicates that

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there is an indirect relationship between HR strategy and competitive strategy of organization.
This relationship shows the relevancy of the article to the given issue.
Qehaja, A.B. & Kutllovci, E, 2015, The Role of Human Resources in Gaining Competitive
Advantage, Journal of Human Resource Management.
In this article, the author states that human resources are significant source of competitive
advantage in the organizations. In this article, the study was conducted in seven wholesaler
distribution firms of non-food and food items in the Kosovo. A survey was conducted on 35
managers and directors in these firms. The article stated that these firms are not considering the
human resources in gaining competitive advantage. So, they do not adopt any strategy for the
development of human resources. The research found that the firms should have more strategic
human resource practices, as the firms with more human resource practices have greater market
value and position. The results show that these firms may have more competitive advantage.
Definitely, this article is relevant to the management of human resources and its impact on the
competitive advantage against its competitors. There should be an effective strategic human
management in the firms to deal with all the strategic and administrative issues.
Discussion
In the above discussion, there are four articles, which significantly emphasize on the importance
of strategic human resource management on organizational performance and competitive
advantage (Kehoe and Wright, 2013). All four articles support the issue that “strategic human
resource management help an organization in attaining competitive advantage.” For an
organization, it is true that there should be a standard strategy to manage their human capital, as
it in turn will have positive impact on performance of organization (Armstrong, 2009). Each and
every organization should be familiar with all the theoretical aspects, which are required to
manage the human resources. These aspects will assist the organization to motivate the
employees and satisfy the customers. Managing the human resources strategically enhances the
financial performance of the organization like; profits and sales growth. It enhances its
competitive advantage in the industry. From the research in last article, it can be argued that it is
essential for an organization to adopt strategies and strategic human resource management to
stay competitive in the market (Barney & Clark, 2007).

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Recommendations
On the basis of results and findings of all the articles, it can be stated that strategic human
resource management plays a vital role in overall success of organization. The firms should
value its employees as human assets, as they are a significant source of competitive advantage.
They should make investment in best and talented human resources by making them more
professional. In addition, they should have unique strategies for human resources and implement
them in administrative work. They should use effective practices for human resource
management, like; training and development, motivation, recruitment and selection and
performance appraisal. From the above analysis, it can be said that the organizations should
establish the man power as valuable source of competitive advantage to the organization.

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References
Armstrong, M.A, 2009, A Handbook of Human Resources Management. (11th ed.).London:
Kogan Page.
Barney, J. B., & Clark, D. N, 2007, Resource-based theory: Creating and sustaining competitive
advantage. Oxford: Oxford University Press
Cania, L. 2014, The Impact of Strategic Human Resource Management on Organizational
Performance, Economic Seria Management, Volume 17, Issue 2.
Delery, J.E. and Roumpi, D, 2017, Strategic Human Resource Management, Human Capital and
Competitive Advantage: is the Field going in Circles, Human Resource Management Journal,
Vol. 27, No. 1.
Jalagat, R.C, 2016, A Critical Review of Strategic Human Resource Management and
Organizational Performance, Global Journal of Advanced Research, Vol. 3, Issue-10.
Kehoe, R.R. and Wright, P.M, 2013, The impact of high-performance human resource practices
on employees’ attitudes and behaviors’. Journal of Management, 39: 2, 366–391.
Ployhart, R.E. and Moliterno, T.P, 2011, Emergence of the human capital resource: a multilevel
model’. Academy of Management Review, 36: 1, 127–150
Qehaja, A.B. & Kutllovci, E, 2015, The Role of Human Resources in Gaining Competitive
Advantage, Journal of Human Resource Management.